How Amazon Built A $70 Billion Clothing Business

Millions of shoppers will turn to Amazon on Cyber Monday for deals on shoes and clothing. The segment is expected to cross $72 billion in sales for the company in 2025. Amazon’s apparel and shoe business is about double the size of Walmart’s. But the category faces high rates of returns, and the company is under scrutiny for allegedly anticompetitive practices surrounding its pricing strategies. Still, Amazon offers brands sales volumes that they cannot get anywhere else. Watch the video to learn more about why Americans are obsessed with Amazon clothing.

Chapters:
0:00 Introduction
1:05 Chapter 1: All in on clothing
4:47 Chapter 2: Marketplace model
10:55 Chapter 3: The return problem

Produced by: Ryan Baker
Edited by: Darren Geeter
Animation by: Jason Reginato, Emily Park
Senior Managing Producer: Tala Hadavi
Additional Footage: Getty Images

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How Amazon Built A $70 Billion Clothing Business

Post from CNBC on December 01, 2025

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